Once you have sent in your application for a credit card the credit card issuer will first of all review your credit standing and will only approve your application after they are convinced of the fact that your credit rating is high enough to be deserving of being issued a credit card. This is standard procedure that every credit card company will follow. However, for those who are making a bad credit card application there is hope too because credit card companies apply a different set of rules for those who wish to have a credit card issued despite their bad credit standing.
Special Credit Cards
Though most credit card companies would otherwise refuse to issue a credit card to those with bad credit, under certain circumstances they might still approve your bad credit card application. The truth of the fact is that there are certain kinds of credit cards that are specifically issued to those with bad credit scores. One such credit card is the secured credit card.
In order to get a secured credit card you would first of all need to create a savings account or even deposit some cash in the bank from which you wish to get the secured credit card issued. This cash that you deposit is used as collateral against your secured credit card and will be used in case you default on paying back your credit card balance.
You can only access the cash that has been deposited with the bank after you have canceled your credit card. Of course, the total will be reduced in order to pay off any outstanding balances. The knowledge that your bad credit card application can still be approved should make you apply for a secured card that also provides you with the advantage that you can use this card to improve your credit score.
Once you credit score improves you will then qualify for lower interest rates the next time you apply for a home loan or auto loan and this in turn can lead to savings in thousands of dollars by way of interest saved.
You can also make your bad credit card application in order to get unsecured credit cards which are given without having to provide collateral though cost of using such cards is quite higher. An Orchard Bank secured credit card application too can prove to be an ideal solution for those having an especially low credit score.
You can also think about applying for a debit card as an alternative to making a bad credit card application because this kind of card does not carry with it a credit limit and you can spend as much money as you want as long as there are sufficient funds in your bank account.